From: kcory@redwhistle.com X-Lotus-FromDomain: WEBER To: declan@well.com Date: Mon, 23 Oct 2000 13:22:26 -0700 Subject: Zero-Knowledge -- Open Source Initiative = Responsible Privacy

Hi Declan,

I wanted to let you know that Zero-Knowledge Systems today announced that it has open-sourced its Freedom Linux client, the first step in its initiative to disseminate privacy protocols and encourage pervasive privacy standards by open sourcing its entire Freedom network and software.

Through its open source initiative, Zero-Knowledge is pioneering a movement toward responsible privacy by inviting software developers and cryptographers to test and improve upon the Freedom code. Only by opening the math and cryptography behind privacy tools to industry examination can Zero-Knowledge and other privacy companies truly prove the efficacy of their privacy solutions. I've included the announcement below for your information.

If you would like further information or would like to speak with a Zero-Knowledge executive about the open source initiative, please call me at (503) 332-0204.

Best regards, Kristy Cory for Zero-Knowledge kcory@redwhistle.com 503-332-0204

FOR IMMEDIATE RELEASE

ZERO-KNOWLEDGE SYSTEMS RELEASES SOURCE CODE OF ITS NEW LINUX FREEDOM 2.0 CLIENT; ANNOUNCES OPEN SOURCING OF FREEDOM PRIVACY SUITE

--Source release demonstrates Zero-Knowledge Systems ' commitment to creating open standards and ubiquitous privacy technologies that benefit all Internet users--

Montreal ? October 23, 2000 ? Zero-Knowledge® Systems Inc., the leading developer of privacy solutions for consumers and companies, today released the source code of its next-generation Linux Freedom client. The company also announced its commitment to open sourcing the entire award-winning Freedom® privacy suite.

This open source initiative demonstrates the company's commitment to creating open standards and ubiquitous privacy technologies that benefit all Internet users. Using Freedom code developed by Zero-Knowledge, developers, cryptographers and standards bodies will be able to build new open protocols and technologies for protecting privacy.

As the recognized privacy leader, Zero-Knowledge is fulfilling its commitment to deploy consumer products that are open and transparent in order to allow anyone to verify how they perform. The release of source code provides the software development and security communities the necessary proof that Freedom alone empowers consumers to trust only themselves with their data and privacy.

"Responsible privacy begins with privacy providers being open and transparent with their users. Zero-Knowledge is demonstrating its leadership by releasing the source code to Freedom and facilitating the creation of necessary privacy standards," said Mike Shaver, Chief Software Officer of Zero-Knowledge Systems. "We encourage other privacy companies to do the same."

"Open source desktop users have a need for powerful privacy tools which facilitate their use of network services. At Helix Code we are building a world-class open source desktop environment that gives the user very intimate access to web services, and so privacy is especially important to our users," said Nat Friedman, Chief Executive Officer of Helix Code, the leading open source desktop software and services company. "Now that Zero-Knowledge System's Freedom privacy suite will be open sourced and available for Linux, this important need is finally being addressed. This is a big win for the open source community."

Freedom 2.0 for Windows (95/98, 2000, NT, Me) and Linux will be available for Internet users before Christmas 2000. The 2.0 version for Windows will include new features and performance enhancements requested by the Freedom user community. A Macintosh version of Freedom is expected in 2001. Among other accolades, Freedom was named 2000's "Most Promising Internet Newcomer" by PC World and called "the Rolls-Royce of privacy software" by Yahoo! Internet Life.

The entire source code to the Linux version of the Freedom privacy suite, released under the Mozilla Public License 1.1 and other Open Source? licenses, is available for download at http://opensource.zeroknowledge.com. Zero-Knowledge will next release the source code to the Windows client and to the server software that powers the Freedom Network, a globally-distributed network of servers operated by service providers and independent operators that route Freedom traffic.

Freedom is the first commercial product that empowers Internet users to fully control their identities and personal information on the Internet without having to trust their data to an ISP, privacy company or other third party. Freedom transparently encrypts and reroutes Internet traffic, preventing the accidental release of information that could compromise personal privacy online. Users create multiple digital identities (pseudonyms, or "nyms") that they can associate with their Internet activities.

About Zero-Knowledge Systems, Inc.

Founded in 1997, Zero-Knowledge Systems (http://www.zeroknowledge.com) is laying the digital infrastructure for privacy-enabled communications and commerce between individuals, companies, governments and organizations. Based on its privacy infrastructure for the Internet, Zero-Knowledge creates easy-to-use software and services that enable privacy through advanced mathematics, cryptography and source code: the only reliable way to ensure Internet privacy and security.

In December 1999, Zero-Knowledge launched Freedom®, the only privacy system that empowers Internet users to surf the Web, send email, chat and post to newsgroups in total privacy without having to trust third parties with their personal information. Freedom can be downloaded at http://www.freedom.net. Journalists can visit the Zero-Knowledge pressroom at http://www.zeroknowledge.com/media.

(Freedom® and Zero-Knowledge® are registered trademarks of Zero-Knowledge Systems, Inc. All other names are the property of their respective owners.)

For more information

Dov Smith Director of Public Relations 514.350.7553 dov@zeroknowledge.com

Kristy Cory Red Whistle Communications 503.552.3749 kcory@redwhistle.com